Louise Yamada – What Is Happening In The Gold Market?

With the U.S. Dollar Index recently falling to the 95.5 level and investors unsure where gold and silver are headed from here, today King World News shares a fascinating piece which features a key illustration about what is really happening with the price of gold.

June 4 (King World News) – "Gold – Unresolved, But Weak … Gold Spot price (GOLDS-1,190.55) hasn’t budged much and is still holding between a series of lower highs, below the 2005 uptrend, and support at the 1,138 low from 2014 (see Figure 29, left). A lift through the downtrend at 1,271, or a break of support at 1,138 should determine the next move. The structural bear market remains in place technically for Gold.

Figure 29. Gold Spot Price (Monthly)

Both momentum models, weekly and monthly, are negative but flat; the descending triangle traced out since late 2013 suggests resolution to the downside. The next risk, with a break of support, retains the target of 1,000 which represents support from the 2008-2009 consolidation (see oval). A measured move from the back of the triangle projected down from current levels arrives at 1,026 and corroborates the next target / support." This was a small portion of Yamada's 50 page report. To subscribe to Louise Yamada Technical Research Advisors CLICK HERE.

***ALSO JUST RELEASED: WARNING: Western Central Banks Are Now On The Verge Of Losing Control CLICK HERE.